MESA, Ariz. — The Mesa City Council has approved a development agreement for the construction of the Gateway Auto Mall project near Signal Butte and Pecos roads.
On Monday, the council approved a series of measures in support of developing about 60 acres near the Phoenix-Mesa Gateway Airport.
"The Developer intends to develop the Property to include an auto mall, a commercial area with multiple retail establishments for motor vehicles of between up to six to eight New Car Dealerships," a city report states.
The agreement with the city includes developers potentially receiving a tax reimbursement worth up to $11 million.
"Without the incentive, the project would not be able to locate in Mesa in the same time, place, or manner primarily because of the high level of infrastructure costs necessary to support the development," a city report states.
A third-party economic analysis done for the city shows Mesa could collect over $15 million in sales tax revenue on one of the car dealerships during a 12-year term.
"Gateway Auto Mall will bring about an exciting regional commercial auto and commercial use at a key arterial intersection, freeway interchange, and gateway into Mesa from other southeast valley cities," development documents state.
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